I wash the bottles after I've used them, make sure they're thoroughly drained, and then stand them on the window sill for a day or two until I'm sure they're completely dry, then they're stored in the garage.
At bottling time I take the dry bottles, spray in a solution of Videne (Boots chemist can get it for you), tip any out and whack the sugar and beer in, spray the inside of the cap with the Videne, and whack the cap on. Job done.
Videne is an iodine based antiseptic - correctly diluted it will kill almost everything, but once diluted down by the beer it's impossible to detect any taste from it - I've been using it for over a year now and it works a treat :mrgreen: